Crypto Market: What’s the Difference Between a Bull and a Bear Market?

Cryptocurrency Jargon
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Are you looking to invest in the cryptocurrency market? Well, it is important to understand that this market is highly unpredictable, with prices fluctuating rapidly over a short period of time. Thus, it is not possible to accurately predict where a token’s value may go next. To talk about such shifts in the market, people often use the terms “bull” and “bear” – a practice that is also adopted by many crypto owners. If you are considering mining Bitcoin, see how Bitcoin earns interest.

About Bull Market

A bull market is one that we all can see whenever we want and whenever it comes to hearing that now the prices in a market have started rising or there is a full strong expectation that there is a drop of 20% in the prices.

So now it is expected that there is a maximum increase in the prices by 20%, so this. We all call the process Bullish or Bull Market. It appears very fast whenever it comes to the market, and we all just like to see it as a sign that it is doing very well and is growing more and more.

Not only this in the bull market, more and higher demand for the shares is also being seen along with the increase in the prices. In general, we have all come to see how volatile the crypto market has always been, with the price of one or more coins changing by about 25% in a short period of hours, and whenever such a change is observed, it is often described solely as bullish or bearish.

About Bear Market

We all see a bear market as factually the opposite of a bull market. In this, it is seen when there is always a fall of more than 20% in every market price. All of this activity is often accompanied by a fall in demand for the stock, as well as some investor interest.

In this, such a market may last only a few decades or even weeks. However, many traders are quite as happy as buying stock in bear markets but whenever their prices go down, under some assumption prices go up again.

In general, we all see that the phrase “buy the dip” or BTC is more commonly used among crypto investors.

Terms Originate

Although now we all know that “bull” and “bear” are more commonly used in a world like crypto, they did not originate there but still, these words are being used more and more. It was first used in some traditional stock as well as markets.

It is believed that only these two words were chosen due to some manner of fighting between the bull and the bear. While in this the bulls always turn their horns upwards, at the same time bears always keep their heads down in battle.

Although these words can only be guessed at that they all became more and more popular in the eighteenth century, and this was possible when we all used to use more and more words like buy as well as sell a bear skin.

Speaking of “bear”, its use of the descriptor came before”. Simply put, both “bull” and “bear” have been used to describe organizations or individuals that we all perform in certain ways.

Bulls come under the assumption of buying stocks in this and due to this, the market rises soon. Bears, on the other hand, do the same thing, but with some downside expected.

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Paschal Okafor is NaijaTechGuide Team Lead. The article Crypto Market: What’s the Difference Between a Bull and a Bear Market? was written by NaijaTechGuide Team. The article was last modified: January 10th, 2023
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